So I found a 1981 300TD wagon with 209K. The guy told me it didn't run and he doesn't know what's wrong with it. "Something easy" he says, yeah right. So even with ether this thing won't kick at all, and there's a lot of blow-by coming out of the oil filler hole. The engine needs a total rebuild.

The rest of the car is fair. Moon roof doesn't leak. Rust in the normal spots, more than I'd care to have, but not too bad. All glass is there. no rips in seats. I could rock it.

So my question is this. What's a fair price for this car, with a blown engine? I'm quite mechanically inclined and wouldn't mind attempting to rebuild the engine myself, or have the block done by professionals. The guy originally wanted $1000 and was quick to let me know he wanted to sell. I don't really want to give the dude more than a few hundred for it .... thoughts, suggestions?

Thanks!